1. NTPC Ltd.
Electric Utilities
Q2 FY16 Result Preview
BUY
Rajnath Yadav | Board line: +91 22 6707 9444; Ext. 975 | rajnath.yadav@choiceindia.com
1
Oct. 29, 2015
NTPC Ltd. is expected to report its Q2 FY16 result today. Following is our financial estimates for the quarter.
Source: Choice Broking Research
Currently we have a “BUY” recommendation on the stock with a target price of Rs. 169 per share. However, we will review
the same post detailed analysis of the Q2 FY16 result.
Particular (Rs. mn) Q2 FY16E Q1 FY16 Q2 FY15 Q-o-Q (%) Y-o-Y (%) Reason / Comments
Total Operating
Revenue
179,111.1 170,845.8 167,366.3 4.8% 7.0%
Top-line growth to be aided by higher
power generation (+5.5% Y-o-Y)
EBITDA 41,143.6 34,376.7 32,423.3 19.7% 26.9%
Operating expenditure to increase at a
lower pace as compared to top-line,
leading to a 26.9% Y-o-Y rise in EBITDA.
Reported PAT 20,315.9 21,353.5 20,716.3 -4.9% -1.9%
Higher depreciation and interest expenses
coupled with higher effective tax rate to
result in decline in PAT on Y-o-Y basis
EBITDA Margin (%) 23.0% 20.1% 19.4% 285 bps 360 bps
Lower fuel cost to led to expansion in
EBITDA margin
PAT Margin (%) 11.3% 12.5% 12.4% (116) bps (104) bps
Higher depreciation, interest expenses and
effective tax rate to result in contraction in
PAT margin
2. es
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The price target for a large cap stock represents the value the analyst expects the stock to reach over next 12 months. For a
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Q2 FY16 Result Preview
Rating Legend
Rating Upside
BUY Absolute Return >15%
Accumulate Absolute Return Between 10-15%
Hold Absolute Return Between 0-10%
Reduce Absolute Return 0 To Negative 10%
Sell Absolute Return > Negative 10%
Institutional Equity Team
Name Designation Email id Contact No.
Ajay Kejriwal President ajay@choiceindia.com 022- 6707 9850
Sumeet Bagadia Head of Research sumeet.bagadia@choiceindia.com 022 - 6707 9830
Amit Singh VP - Institutional Sales amit.singh@choiceindia.com 022 - 6707 9852
Devendra Gaikwad Sr. Manager - Institutional Sales devendra.gaikwad@choiceindia.com 022 - 6707 9877
Rajnath Yadav Research Analyst rajnath.yadav@choiceindia.com 022 - 6707 9975
Satish Kumar Research Analyst satish.kumar@choiceindia.com 022 - 6707 9974
Kunal Parmar Research Associate kunal.parmar@choiceindia.com 022 - 6707 9982
Ritesh Patel Research Associate ritesh.patel@choiceindia.com 022 - 6707 9978
Amit Pathania Research Associate amit.pathania@choiceindia.com 022 - 6707 9979
Vikas Chaudhari Research Associate vikas.chaudhari@choiceindia.com 022 - 6707 9988
Trirashmi Ghoderao Research Advisor trirashmi.ghoderao@choiceindia.com 022 - 6707 9972
Neeraj Yadav Research Advisor Neeraj.yadav@choiceindia.com 022 - 6707 9988
NTPC Ltd.
Date Recommendation CMP (Rs.) Target Price (Rs.)
01-Aug-2015 BUY 135 169
23-Jul-2015 BUY 137 169
